EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO. 214
Issued by the Authority of the Minister for Primary Industries and Energy.
GRAIN LEGUMES LEVY ACT 1985
GRAIN LEGUMES RESEARCH LEVY REGULATIONS
Section 6 of the Grain Legumes Levy Act 1985 (the Act) imposes a levy on leviable grain legumes either delivered by the grower to another person other than for storage on behalf of the grower or processed by the grower.
Section 7 of the Act provides that the rate of levy shall not exceed $2.60 per tonne.
Section 10 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 10(2) of the Act provides that before making regulations for the purposes of Section 7 the Governor-General shall take into consideration any relevant recommendation made to the Minister by the growers’ organisation, the Grains Council of Australia (GCA).
The currently prescribed rate of levy operative since 1 November 1985 is 75 cents per tonne. The GCA has presented a submission to the Minister requesting that the rate of levy be increased by 25 cents to $1.00 per tonne commencing for the 1988-89 season.
The industry’s request to increase the levy accords with the Government’s objective of encouraging rural industries to increase their contribution for research to 0.5% of the industry’s gross value of production (GVP). The increase in the prescribed rate of levy represents an increase from 0.22% to 0.30% of the industry’s estimated GVP for 1988-89.
Section 7 of the Rural Industries Research Act 1985 (the Research Act) provides that grain legumes levy money be paid into the Grain Legumes Research Trust Fund and subsection 9(1) of the Research Act provides that the Grain Legumes Research Council may approve the payment of money out of that Trust Fund for the purposes of research and development activities in respect of the grain legumes industry.
The Commonwealth Government contributes matching amounts to cover research expenditure recommended by the Grain Legumes Research Council and approved by the Minister.
In any one financial year the Commonwealth contribution is limited to 0.5% of the GVP. Estimated Commonwealth expenditure for 1988-89 is $0.9 million. Increased funding to meet estimated Commonwealth matching obligations in 1988-89 resulting from the proposed increased levy was announced in May 1988 following the Industry Development Review.
The proposed Grain Legumes Research Levy Regulations to increase the rate of levy to $1.00 per tonne is to apply from 1 October 1988.
Overview
The Grain Legumes Research Levy Regulations, issued in 1988, are amendments to the Grain Legumes Levy Act 1985, designed to address the need for increased funding for research and development within the grain legumes industry. Enacted by the Australian Parliament, the Act originally imposed a levy on grain legumes to fund research, with an initial rate of 75 cents per tonne. The policy objective was to support rural industries in contributing to their own research efforts, aligning with a broader government goal of enhancing industry-led research. The proposed regulation, which increases the levy to $1.00 per tonne, was in response to recommendations from the Grains Council of Australia, aiming to raise the industry's contribution to research to 0.5% of its gross value of production. This increase was also intended to match the Commonwealth's commitment to contribute an equivalent amount for research activities, ensuring a balanced funding approach between industry and government.
Scope and Application
The Grain Legumes Levy Act 1985 applies to growers who deliver leviable grain legumes to another person for purposes other than storage on behalf of the grower, or who process these legumes themselves. The Act imposes a levy on these transactions, with the rate specified in the Act not exceeding $2.60 per tonne, although the current rate is 75 cents per tonne, effective since 1 November 1985. The Act's jurisdiction is national, as it is a Commonwealth Act, thereby extending its reach across all states and territories in Australia. The Governor-General has the authority to make regulations under Section 10 of the Act, with these regulations not inconsistent with the Act and necessary for its effective implementation. Importantly, before making such regulations, the Governor-General must consider any relevant recommendations from the Grains Council of Australia, as stipulated in Subsection 10(2) of the Act. The funds collected from the levy are directed into the Grain Legumes Research Trust Fund, from which the Grain Legumes Research Council can approve payments for research and development activities within the grain legumes industry, as outlined in the Rural Industries Research Act 1985.
Key Provisions
The Grain Legumes Levy Act 1985, as amended by the Grain Legumes Research Levy Regulations, primarily imposes a levy on leviable grain legumes, which is collected either when growers deliver these legumes to another party for purposes other than storage on behalf of the grower or when the legumes are processed by the grower themselves (sections 6 and 7). The levy rate is currently set at 75 cents per tonne, but it is proposed to increase this rate to $1.00 per tonne, effective from 1 October 1988. This rate increase aligns with the government's objective of boosting industry contributions to research, raising the contribution from 0.22% to 0.30% of the industry's gross value of production (GVP) for the 1988-89 season.
The Act also provides the Governor-General with the authority to make regulations that are necessary or convenient for implementing the Act, provided these regulations do not conflict with the Act (section 10). Before making any regulations related to the levy rate, the Governor-General must consider any relevant recommendations from the Grains Council of Australia (section 10(2)). The Grain Legumes Research Trust Fund, into which the levy money is paid, allows for approved research and development activities related to the grain legumes industry (section 9(1) of the Rural Industries Research Act 1985). The Commonwealth Government contributes matching funds for research, up to a limit of 0.5% of the GVP for any financial year, with an estimated expenditure of $0.9 million for 1988-89.
Parties governed by the Act, including growers and processors of grain legumes, are required to pay the levy at the prescribed rate when delivering or processing the legumes. The Act ensures that the funds collected through the levy are deposited into the Grain Legumes Research Trust Fund and are subsequently used for approved research and development activities, subject to the approval of the Grain Legumes Research Council. The Act further mandates that the Governor-General take into account any recommendations from the Grains Council of Australia before making regulations that affect the levy rate.
Failure to comply with the requirements of the Act, such as not paying the prescribed levy, may result in civil or criminal consequences. The specific penalties for non-compliance are not detailed in the provided text, but they could include fines or legal action to enforce payment of the levy. The Act's purpose is to ensure that the grain legumes industry adequately funds research and development initiatives, supported by both industry contributions and Commonwealth matching funds.